Locust Walk Acquisition Corp (LWAC)

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Locust Walk Acquisition Shares Jump Premarket on Merger Approval
6:14 am ET August 25, 2021 (Dow Jones) Print


Locust Walk Acquisition Corp. jumped 460% to $49.10 in premarket trading after the company said its stockholders have approved all proposals related to the previously announced business combination with eFFECTOR Therapeutics Inc. at a special meeting of stockholders held Tuesday.

The special purpose acquisition company said 93.2% of the votes cast at the meeting, representing 71.7% of its outstanding shares, voted to approve the business combination.

The merger is expected to close on or about Wednesday. Upon closing, the combined company expects that its common stock and public warrants will begin trading on Nasdaq under the new trading symbols EFTR and EFTRW, respectively, starting on or about Thursday.

Locust Walk received elections to redeem 17 million of its outstanding shares, which will leave $5.2 million in its trust account. Combined with the $60.7 million in expected proceeds from a concurrent private placement, there will be $65.9 million of total cash proceeds from the transaction. As a result, eFFECTOR has waived the requirement that the total cash proceeds equal or exceed $100 million. There will be $53.5 million in cash available to the combined company from the transaction, after deducting transaction fees and expenses.


Chris Wack at [e-mail]